According to Layoffs.fyi, over 107,000 tech employees have been laid off across 366 companies in 2024. These cuts follow a year where more than 262,000 employees were let go from over 1,180 firms in 2023. The primary reasons cited include over-hiring during the pandemic, economic pressures, and shifts in business strategies.
In spring 2022, tech job postings on Indeed were 109% above their pre-pandemic baseline but have since fallen below those levels. As of February 2024, tech-related job postings were about 25% below their pre-pandemic baseline.
Interestingly, while the overall number of tech job postings has declined, there remains strong demand for highly specialized roles, particularly in areas like cybersecurity, data science, and AI. These roles are expected to grow rapidly, indicating that while the quantity of job postings may be lower, the quality and specialization of available jobs are becoming more pronounced.
For company owners and recruiters, this means that the competition for top-tier, specialized talent remains fierce.
The last two years have been challenging for the tech industry. As pandemic-driven growth slowed, companies needed to optimize costs, often resulting in workforce reductions. Tech giants like Amazon, Microsoft, and Meta led the way in layoffs, cutting thousands of jobs. Many small companies also had to tighten their belts.
However, this trend has created opportunities for some businesses. With an increasing number of skilled professionals becoming unemployed, tech startups and smaller businesses can now attract talent that was previously out of reach. This influx of expertise has enabled these smaller entities to innovate and grow more rapidly.
This article is for anyone interested in the IT job market or hiring tech talent in 2024. It explores the current state of the tech job market, highlights trends that will impact it in the coming years, and offers practical recommendations for finding the best tech talent today.
Employers face several challenges when hiring tech talent in 2024. The most common issue is finding qualified candidates. Despite a larger talent pool from recent layoffs, identifying candidates with the precise skills and experience required for advanced roles remains difficult. In other words, while finding a developer is relatively easy, finding one who meets the qualifications for a demanding position is a different challenge altogether.
Another factor adding to this challenge is the shift towards remote work. On one hand, this trend has expanded the global talent pool. On the other hand, it has increased competition, with companies worldwide vying for the same top-tier developers, making it challenging to secure the best talent.
Finally, economic fluctuations and the aftermath of mass layoffs have made developers more cautious about job stability. Many are now seeking positions that offer long-term security and robust benefits, making it harder for companies to attract and retain these professionals.
The last two years have been challenging for the tech industry. As pandemic-driven growth slowed, companies needed to optimize costs, often resulting in workforce reductions. Tech giants like Amazon, Microsoft, and Meta led the way in layoffs, cutting thousands of jobs. Many small companies also had to tighten their belts.
However, this trend has created opportunities for some businesses. With an increasing number of skilled professionals becoming unemployed, tech startups and smaller businesses can now attract talent that was previously out of reach. This influx of expertise has enabled these smaller entities to innovate and grow more rapidly.
This article is for anyone interested in the IT job market or hiring tech talent in 2024. It explores the current state of the tech job market, highlights trends that will impact it in the coming years, and offers practical recommendations for finding the best tech talent today.
According to Layoffs.fyi, over 107,000 tech employees have been laid off across 366 companies in 2024. These cuts follow a year where more than 262,000 employees were let go from over 1,180 firms in 2023. The primary reasons cited include over-hiring during the pandemic, economic pressures, and shifts in business strategies.
In spring 2022, tech job postings on Indeed were 109% above their pre-pandemic baseline but have since fallen below those levels. As of February 2024, tech-related job postings were about 25% below their pre-pandemic baseline.
Interestingly, while the overall number of tech job postings has declined, there remains strong demand for highly specialized roles, particularly in areas like cybersecurity, data science, and AI. These roles are expected to grow rapidly, indicating that while the quantity of job postings may be lower, the quality and specialization of available jobs are becoming more pronounced.
For company owners and recruiters, this means that the competition for top-tier, specialized talent remains fierce.
Employers face several challenges when hiring tech talent in 2024. The most common issue is finding qualified candidates. Despite a larger talent pool from recent layoffs, identifying candidates with the precise skills and experience required for advanced roles remains difficult. In other words, while finding a developer is relatively easy, finding one who meets the qualifications for a demanding position is a different challenge altogether.
Another factor adding to this challenge is the shift towards remote work. On one hand, this trend has expanded the global talent pool. On the other hand, it has increased competition, with companies worldwide vying for the same top-tier developers, making it challenging to secure the best talent.
Finally, economic fluctuations and the aftermath of mass layoffs have made developers more cautious about job stability. Many are now seeking positions that offer long-term security and robust benefits, making it harder for companies to attract and retain these professionals.
One significant factor that can change the software engineer job market is the development of AI. While there are ongoing discussions about the extent to which AI can reduce developers' workloads, it is widely understood that the demand for skilled programmers will not diminish any time soon.
According to CompTIA's "State of the Tech Workforce 2024" report, the tech sector is expected to see growth. The US tech workforce is projected to grow by 3.1% this year, adding over 300,000 new jobs and bringing total tech employment to 9.9 million workers. This growth reverses the modest 1.2% increase seen in 2023, highlighting a strong rebound in the sector.
So, when will tech job market recover? Given these projections, the future tech job market will require businesses to be adaptable and proactive. Companies can attract and retain skilled professionals by offering competitive working conditions and ample career opportunities.
Staff augmentation is a flexible recruitment strategy that enables businesses to hire external tech talent, allowing them to efficiently fill gaps in their workforce. It involves integrating external professionals into a company's existing team to work on specific projects or address particular needs, providing a seamless extension of the internal workforce.
Unlike traditional IT outsourcing, where entire projects or functions are handed over to a third party, staff augmentation places these external hires directly within the company’s workflow and management structure.
Here are the most significant benefits tech outstaffing provides to companies:
The tech industry's dynamic nature requires companies to be agile and responsive to changing market conditions. Staff augmentation provides the flexibility to scale teams up or down based on project demands.
Staff augmentation provides access to a global talent pool, overcoming local skill shortages and bringing diverse expertise into the team. This broad access enhances innovation and problem-solving capabilities.
Staff augmentation helps alleviate the burden of human resources management. By leveraging external talent, companies can reduce the complexities and administrative tasks associated with hiring, training, and managing full-time employees.
Staff augmentation is often more cost-efficient compared to in-house hiring, as it reduces recruitment and training expenses and eliminates the overhead costs associated with in-house employees.
These advantages of staff augmentation have become crucial for companies aiming to optimize employment strategies in the IT job market in 2024.
So, is hiring tech talent as simple as never before?
In summary, the tech job market 2024 is transforming and growing despite the backdrop of significant layoffs. While the influx of laid-off professionals has increased competition for jobs, it has also presented opportunities for startups and smaller businesses to attract experienced talent.
Yet, to attract the most talented individuals, especially in fast-growing industries, companies need to continually adjust and improve their recruitment strategies, including considering staff augmentation.
Staff augmentation has become an increasingly popular solution for companies looking to hire remote developers in the current tech job market. It allows businesses to scale their workforce with specialized talent, accessing a broader pool of skills and expertise while alleviating the burden of extensive human resources management.
Contact us to discuss how ALLSTARSIT can address your company’s specific talent needs.
The last two years have been challenging for the tech industry. As pandemic-driven growth slowed, companies needed to optimize costs, often resulting in workforce reductions. Tech giants like Amazon, Microsoft, and Meta led the way in layoffs, cutting thousands of jobs. Many small companies also had to tighten their belts.
However, this trend has created opportunities for some businesses. With an increasing number of skilled professionals becoming unemployed, tech startups and smaller businesses can now attract talent that was previously out of reach. This influx of expertise has enabled these smaller entities to innovate and grow more rapidly.
This article is for anyone interested in the IT job market or hiring tech talent in 2024. It explores the current state of the tech job market, highlights trends that will impact it in the coming years, and offers practical recommendations for finding the best tech talent today.
